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Gold oscillates, silver struggles

G. Chandrashekhar

MUMBAI, April 29

GOLD oscillated last week in a range, breaking above and then below the $265 an ounce mark having been subjected to lease rates and currency movements. The yellow metal ended the week at $264.60/oz, London PM fix, marginally up (0.3 per cent) week-on-wee k. Silver continued its poor run and followed the leader.

A stronger euro following the decision of the European Central Bank to leave interest rates unchanged and high lease rates provided support to gold. The latest Comex commitment of traders report for gold showed a small fall in net short positions of larg e speculators from 180.8 tonnes to 141.7 tonnes.

``Tightening gold lease rates and movements in the currency markets continued to be the key determinants of gold price direction,'' said Mr Kamal Naqvi, analyst with Macquarie Research Equities. A recovery in the dollar following stronger than expected G DP figures for the first quarter saw gold slip back.

Silver continued to struggle the whole of last week and just about managed to hold around $4.40/oz with prices continuing to follow the direction of gold.

The platinum group metals were generally weaker over the week, although as always prices were quite volatile. Platinum continued to slide towards and eventually below $600/oz, to close the week at $596/oz, down 3.9 per cent. Similarly palladium was also under pressure and dropped below $700/oz to end the week at $685/oz, down 1 per cent.